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ENAV Group Consolidated Financial Statements

Provision for bad debt and inventories losses

The provision for bad debt and inventory losses respectively reflect the estimates
of the Group’s bad debt losses and of the amount of spare parts that have become
obsolete and can no longer be used for the systems and equipment to which they
relate. Although it is considered that these allowances are reasonable, the use of
different assumptions or a change in economic conditions could lead to changes and
accordingly have an effect on results.

Disclosures on Cash Generating Units (CGUs)

Based on the Group’s current structure, management has identified two cash-gene-
rating units (CGUs):
• Air navigation services: the CGU corresponds with the legal entity ENAV, the Parent

Company that has as its core business providing air traffic management and
control services, as well as other services essential for navigation over the Italian
skies and at the national civil airports under its jurisdiction, ensuring the maximum
technical and systematic standards in flight safety, and the enhancement of the
technology and infrastructure of flight assistance systems.
• Maintenance services: the CGU corresponds with the subsidiary Techno Sky S.r.l.,
whose core business is the technical management and maintenance of air traffic
control equipment and systems.

6. New accounting standards, interpretations and amendments
adopted by the company

As an addition to the accounting standards adopted to prepare the
consolidated financial statements for the year ended 31 December 2014,
the following section set out the main changes occurring in 2015 to the
accounting standards applicable for the first time effective from 1 January
2015 that are of relevance to the Group, together with the interpretations and
amendments to standards that are not yet effective or not yet adopted by
the European Union, and which could find application in future consolidated
financial statements.
• FRIC 21 Levies - This interpretation establishes when an entity must
recognize a liability in its financial statements for an obligation to pay a
levy, other than income taxes, due to the government or, more generally,
to local or international bodies. More specifically, the interpretation requires
a liability to be recognised in the financial statements when the obligating
event generating the obligation to pay a levy occurs, as defined in the
legislation. When the obligating events occurs over a specific time period
(for example, generating revenue over a specific time period), the liability
must be recognised progressively. If the obligation to pay is triggered by

ENAV - Annual financial report 2015 95